"We remain focused on completing the integration of iLoop Mobile and on implementing our global business strategy to provide a broad set of mobile solutions to large multinational entities.Our third quarter results reflect those efforts," said Mathew Harris, CEO of Lenco."We see broad acceptance of our rich media MMS messaging solutions for both marketing and business process initiatives.Those solutions have become key competitive differentiators for us and we expect that to continue to be important across our target markets," continued Harris.

Third Quarter Review

Revenue increased 51% year-over-year to $4.2 million.

Gross profit increased 37% year-over-year to $2.4 million.

Operating expenses increased 11% year-over-year to $4.6 million.The increase was primarily due to increased sales, marketing and development expenses offset by a decrease in general and administrative costs.

"We're pleased with our progress and will continue to focus on execution in all aspects of the business as we grow both domestically and internationally," concluded Harris.

Balance Sheet As of September 30, 2012 the Company had cash and cash-equivalents of approximately $0.2 million and a net working capital deficit of $11.1 million. Cash used in operations during the nine months ended September 30, 2012 totaled $6.6 million.

Lenco Mobile Inc.

Condensed Consolidated Balance Sheets

(unaudited)

As of

September 30, 2012

December 31, 2011

(In thousands, except share data)

ASSETS

Current assets:

Cash and cash equivalents

$

153

$

3,098

Accounts receivable, net of allowance of $113 and $99, respectively

3,328

1,680

Other current assets

303

383

Income taxes receivable

–

356

Total current assets

3,784

5,517

Property and equipment, net

382

464

Other noncurrent assets:

Intangible assets - goodwill

24,184

24,200

Intangible assets - other, net

7,802

9,176

Other noncurrent assets

26

31

Total other noncurrent assets

32,012

33,407

Total assets

$

36,178

$

39,388

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable and accrued expenses

$

6,394

$

6,059

Income taxes payable

94

–

Deferred revenue

202

711

Retention bonus

3,313

4,121

Preferred dividend payable

2,200

1,267

Current portion of long-term obligations, (convertible debt portion of $260, and $1,626, respectively)

Basic and diluted net loss per share applicable to common stockholders

Continuing operations

$

(0.05)

$

(0.04)

$

(0.15)

$

(0.09)

Discontinued operations

$

–

$

(0.42)

$

–

$

(0.30)

Net loss per share applicable to common stockholders

$

(0.05)

$

(0.48)

$

(0.15)

$

(0.44)

Weighted average shares used in per share calculation - basic and diluted

80,544,300

71,145,659

80,563,250

71,145,659

ABOUT LENCO MOBILE (OTCQB: LNCM) In December 2011, iLoop Mobile and Lenco Mobile merged to form a global mobile technology and services firm. This powerful union gives the company the expertise and technology to support customers in developing and launching large scale mobile initiatives. Lenco offers unique high performance MMS capabilities along with SMS, Mobile Web, Mobile Social Integration, International Services, Carrier Products, and a broad range of vertical specific solutions. The combination of expertise and leading-edge mobile technology has the potential to create a global leader with unmatched scale, reach, and capabilities. In June 2012, the combined companies began the process of rebranding under a unified name, Archer. For more information about Lenco Mobile please visit www.helloarcher.com.

Forward-Looking Statements DisclosureThis announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to competition, management of growth, new products, services and technologies, potential fluctuations in operating results, international expansion, outcomes of legal proceedings and claims, seasonality, commercial agreements, acquisitions and strategic transactions, foreign exchange rates, system interruption, government regulation and taxation, payments and fraud. More information about factors that potentially could affect Lenco's business and financial results is included under the heading "Risk Factors" in Lenco's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2011 and subsequent filings.Except as may be required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.

Information on Corporate Web Site We intend to use our website as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included on our website in the 'Investor Relations' sections. Accordingly, investors should monitor such portions of our website, in addition to following our press releases and SEC filings.